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MVM agrees to acquire Innogyʼs Czech business

The state-owned Hungarian Electricity Works (MVM) has signed an agreement to acquire 100% of the Czech unit of German energy company Innogy, MVM told state news wire MTI.

The agreement on the acquisition, signed on Friday, is a "milestone" for MVM Groupʼs strategy to expand in the region and become the leading energy company in Central and Eastern Europe, MVM said.

MVM did not disclose the transaction price.

The company noted that it will acquire Innogyʼs energy-generating assets as well as its wholesale and e-mobility portfolios under the deal.

Innogy Ceska Republika (ICR) is the Czech Republicʼs biggest gas trader and is strengthening its position on the electricity market, MVM said. ICR serves more than 1.6 million retail and corporate customers, it added.

The acquisition requires approval from the European Commission as it is linked to clearance of a bigger transaction involving German energy giants E.ON and RWE affecting a number of European countries, MVM said.